ON the basis of reducing the bank rate of mark-up at the rate 0.5 per cent by the State Bank, the director-general of National Savings Directorate, Islamabad, has silently reduced the rate of return on investment under its various savings schemes effective Jan 1.

The step taken by him in this regard is incomprehensible as the nation is already facing hardship in all sectors of price hike of daily utilities, which has made life of a common man miserable.

The investment scheme under Behbood Savings/Pensioners Benefit was the only source through which they were maintaining their daily domestic requirement, including medical expenses.

The scheme was initially introduced by the federal government, keeping in view the hardship of widows and senior citizens. The decision at present made by the DG has pushed them into further financial hardship due to rising inflation.

Senior citizens, especially above 70, need financial assistance to pull on their medical expenses and other domestic requirement of their dependents.

It seems that the DG has made a common routine to decrease the rate of return as and when desired like petrol or gas prices. The NSC is a state-owned organisation and each and every change should be made in the annual budget by the federal government as was the practice in the past.

Furthermore, I would like to draw the attention of the DG to the unjustified distribution of return on Behbood Savings as compared to Defence Savings because both schemes are for 10 years’ maturity and less amount of return is given as under:

Category    Principal     Rate     Period     Total Return Amount            Amount 1. DSC     Rs100,000     @ 10.84     10 years     Rs180,000 2. BSC     Rs. 100,000     @ 12.72     10 years    Rs127,200

Total Difference in return: Rs52,800

Since both the schemes are for 10 years’ maturity, the return should be calculated on the basis of maturity period, and benefits be added and given to the old-age senior citizens and widows so that they can survive.

Lastly, the DG should consider the above request sympathetically and reconsider the rate of return on BSC/PBA and extend relief to those who are affected by this scheme.

He is also requested to allow issuance of all savings scheme to all scheduled banks.

MAHMOOD AHMAD MINHAS Lahore